If you had the option, owning assets that earned income is a better financial strategy than owning assets that create expenses. If you own a house, for example, you need to pay for maintenance, repairs, taxes, mortgage interest, landscaping, utilities, or even sometimes homeowner association fees (HOA). However, if you own a house or apartment and rent or lease them, you can generate income with the property, and in many cases, end up with a positive cash flow after paying all the expenses.
Succeeding in the business of rental properties requires a degree of skills and desires, and making a living strictly off my rental properties alone isn’t as easy as others would lead you to believe.
Planning on expanding your property portfolio beyond one or two locations and want to earn a comfortable living, something equivalent of $90,000 salary? In order to expand your business, you will need to have personal relationship with contractors and real estate agents.
The market in Portland is very competitive at the moment, which is driving prices down, decreasing profit. With mortgage payments to contend with a stiff competition, you may only be able to profit $200 to $500 per month on a single property. That’s $6,000 a year, far from the $90,000 we’re talking about for earning a comfortable living.
Don’t give though, keep at it because all the work you’re putting in now may pay off when you are able to add additional properties. Being a landlord isn’t for everyone, and that’s a good thing (for me); those that are willing to put in the hard labor into creating a successful business will be rewarded.